Super Micro Computer Inc (SMCI)vsTaiwan Semiconductor Manufacturing (TSM)
SMCI
Super Micro Computer Inc
$27.09
-1.13%
TECHNOLOGY · Cap: $16.27B
TSM
Taiwan Semiconductor Manufacturing
$397.67
+0.41%
TECHNOLOGY · Cap: $2.04T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 14527% more annual revenue ($4.10T vs $28.06B). TSM leads profitability with a 46.5% profit margin vs 3.1%. SMCI appears more attractively valued with a PEG of 0.91. TSM earns a higher WallStSmart Score of 84/100 (A-).
SMCI
Strong Buy67
out of 100
Grade: B-
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+85.2%
Fair Value
$216.33
Current Price
$27.09
$189.24 discount
Margin of Safety
+72.4%
Fair Value
$1396.69
Current Price
$397.67
$999.02 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 123.4% year-over-year
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 58.1%
Revenue surging 35.1% year-over-year
Earnings expanding 58.4% YoY
Areas to Watch
3.1% margin — thin
Operating margin of 3.7%
Weak financial health signals
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
Trading at 60.8x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : SMCI
The strongest argument for SMCI centers on Revenue Growth, Altman Z-Score, PEG Ratio. Revenue growth of 123.4% demonstrates continued momentum. PEG of 0.91 suggests the stock is reasonably priced for its growth.
Bull Case : TSM
The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.
Bear Case : SMCI
The primary concerns for SMCI are Profit Margin, Operating Margin, Piotroski F-Score. Thin 3.1% margins leave little buffer for downturns.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
SMCI profiles as a hypergrowth stock while TSM is a growth play — different risk/reward profiles.
SMCI carries more volatility with a beta of 1.63 — expect wider price swings.
SMCI is growing revenue faster at 123.4% — sustainability is the question.
TSM generates stronger free cash flow (377.1B), providing more financial flexibility.
Bottom Line
TSM scores higher overall (84/100 vs 67/100), backed by strong 46.5% margins and 35.1% revenue growth. SMCI offers better value entry with a 85.2% margin of safety. Both earn "Exceptional Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Super Micro Computer Inc
TECHNOLOGY · COMPUTER HARDWARE · USA
Super Micro Computer, Inc. develops and manufactures high-performance server and storage solutions based on an open, modular architecture. The company is headquartered in San Jose, California.
Visit Website →Taiwan Semiconductor Manufacturing
TECHNOLOGY · SEMICONDUCTORS · USA
Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of Taiwan's largest companies, the world's most valuable semiconductor company, and the world's largest dedicated independent (pure-play) semiconductor foundry, with its headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. It is majority owned by foreign investors.
Visit Website →Compare with Other COMPUTER HARDWARE Stocks
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